Friday, 23 June 2017

Mixed Data on U.S. Consumer Comfort Suggest Restrained Spending

Declining confidence among Americans in their personal finances and the buying climate may restrain spending even as the economic outlook improves, Bloomberg Consumer Comfort Index figures showed Thursday.

Key Takeaways

While the headline measure of comfort remains near a 10-year high, the divergence among its components suggests that Americans might hold back a bit on consumption. The data follow last week’s reading on the monthly University of Michigan consumer-sentiment gauge, which had the biggest drop since October amid concerns about President Donald Trump’s economic policies and their chances of passing through Congress. Even so, a solid job market and rising wages should continue to support spending and the broader economy.